Kandal M Venture Limited (Nasdaq: FMFC) received a Nasdaq non-compliance letter on December 22, 2025, for failing to maintain the exchange's minimum $1 bid price requirement. The Cambodian leather goods manufacturer's stock closed below $1 for 30 consecutive business days, violating Nasdaq Listing Rule 5550(a)(2).
The company now has 180 calendar days to regain compliance, according to Nasdaq Listing Rule 5810(c)(3)(A). Kandal's shares must trade at or above $1 for ten consecutive business days during this period to avoid further action. Nasdaq will provide written confirmation if the company meets this requirement.
If Kandal fails to regain compliance within the initial 180 days, it may qualify for an additional 180-day extension. To secure this second compliance period, the company must meet all other Nasdaq Capital Market listing standards except the bid price requirement and provide written notice of its intention to cure the deficiency, potentially through a reverse stock split.
The notification does not trigger immediate delisting, and Kandal's class A ordinary shares continue trading under symbol FMFC. The company stated it is evaluating options to regain compliance but cautioned there is no assurance of success.
Kandal M Venture Limited manufactures affordable luxury leather goods in Cambodia, producing handbags, wallets, and accessories. The company primarily serves as a contract manufacturer for international brands seeking cost-effective production in Southeast Asia.
Nasdaq's minimum bid price requirement is designed to maintain market quality and investor confidence. Companies facing similar compliance issues typically pursue reverse stock splits, share buybacks, or operational improvements to boost investor sentiment and share prices.
The leather goods market has faced headwinds in 2025, with consumer spending shifting toward experiences over luxury accessories. Cambodian manufacturers like Kandal compete with Vietnamese and Chinese producers for international contracts, with labor costs and trade policies influencing production decisions.
Kandal's compliance deadline falls in mid-2026, giving management approximately six months to implement corrective measures. The company's ability to maintain its Nasdaq listing will depend on both market conditions and strategic responses to the compliance challenge.
